What is Tax deduction?
A tax deduction is an amount you can subtract from your income before tax is worked out, which lowers the tax you owe. Contributions to some retirement accounts, such as an RRSP, an FHSA or a traditional IRA, can be deducted within limits.
Why Tax deduction matters
A deduction is worth more to someone on a higher tax rate, which is one reason the same account can suit different people differently.